Can Penny Pinching go too far

There are those who are so intense on saving every little penny that it actually hurts them instead of helping. Need proof? Here are some reasons that this is true:

Credit Card Use. When you use a credit card for purchases the odds are that you will spend more money. But, those who do this often justify it by reasoning that they pay off their cards every month. That is a good thing, but if you impulse buy because of having a credit card, then you have not saved money, only spent more.

Emotion Buying. There are many who are Ebay junkies who are constantly trolling for those best deals ever. The fact is that you can over pay for these items if you are not careful. The problem comes from being caught up in the excitement of the process. It is easy to lose sight of why you are making purchases there from the start. Do not put all of your hopes in getting that best buy on the auction or other websites. Be a wise shopper and stop to consider that the same item that you are longing for it available at other locations from which you can make a purchase – and it might be at a better price, too!

Rebate Rollercoaster. The secret truth is that rebates are not always the best reason to make a purchase. Did you know that less than 50% of all rebates are ever redeemed? Even worse than this, though, is the fact that manufacturers of products with rebates sometimes ‘manage’ the rebate process so that the window in which you have to redeem the rebate is made very short. Or, other tactics include sending your rebate check in an envelope that is made to look like junk-mail so that you will discard it. The way around this is to watch for rebates that are offered instantly at the time of purchase at the register.

Free is not free. There is a whole mind-game of offering items for free in a given promotion. Who does not like to get things for free? We tend to justify a purchase even though it is too much money, based on the fact that we received something for free. The truth is that offers for free things are given to take your focus off of the price that you are really paying for the item that you needed in the first place. Do not allow yourself to become caught up in this.

Paying membership fees. The one that gets many people is that they purchase a membership or even a subscription to a magazine for one or more years in advance, and then never use the membership after a few months. Or, the magazine gets thrown aside and never read again. This is frustrating. For subscriptions, you have no choice, but to ask yourself if you will really take the time in the future to read every issue. Most memberships, however, offer a monthly payment schedule. This is the best option even though you are paying more than if you bought the multi-year special deal. At least if you stop going, you can stop paying, too and save that money that would have gone to the annual fee.

Keep more of your money with these tips. Who doesn’t need that advice right now?